The cryptocurrency market opened this week under pressure, with Bitcoin experiencing a significant drop. BTC fell 2% in the last 24 hours, triggering a broader market decline affecting major altcoins. What accounts for this downturn, and what does the week ahead hold?

A Crypto Market Weakened by Macroeconomic Factors

Bitcoin briefly touched $84,000 on Sunday, a key resistance level potentially signaling a bullish recovery towards $90,000. However, it subsequently fell to around $83,300 on Monday. Other major cryptocurrencies, including XRP, Solana, Cardano, and Dogecoin, also declined by approximately 5%, while BNB showed a slight increase of 3%.

This correction is occurring against a backdrop of escalating US tariffs and deteriorating macroeconomic conditions. Some analysts express concern about a potential US recession and heightened financial market tensions.

The recent downturn may also be attributed to significant liquidations by multi-strategy funds employing arbitrage, long/short positions, and leverage.

Ethereum's Dependence on Bitcoin

Ethereum's price remains strongly correlated with Bitcoin's movements. The weak ETH/BTC ratio indicates Ethereum's struggle to establish independent momentum, despite promising technological advancements. Key price levels will be crucial in determining market dynamics in the coming weeks. As Ryan Lee, chief analyst at Bitget, notes:

Ethereum remains tied to bitcoin movements, stuck between $1,800 and $2,300. The Pectra upgrade and the ongoing expansion of Layer 2 provide it with long-term bullish potential, but in the short term, these fundamentals may not be enough to break the resistance at $2,300-$2,500 without bitcoin leading the charge. If market sentiment deteriorates, ETH could slide to $1,800, but ether could approach the top of its range if BTC recovers.

The current market volatility reflects vulnerability to macroeconomic uncertainty and liquidations from multi-strategy funds. While Bitcoin attempts to stabilize, Ethereum's performance remains dependent on Bitcoin's trajectory. The next few days will be critical in determining whether the market rebounds or experiences a deeper correction, given the threats of recession and tariffs.